George Simmons is an IT professional who, for a number of years, has worked as an employee or contractor in the IT departments of various large corporations. George recently married and he and his spouse set up a private company, 'IT Ahead Pty Ltd' of which George and his spouse are the shareholders and directors. The use of the company would allow protection of private assets and allow income to be split between George and his spouse.

IT Ahead employs George as its consultant and employs his spouse to undertake part-time administrative duties. IT Ahead registers with a number of IT Agencies and George contacted a number of firms for which he has worked offering the services of IT Ahead to provide software analysis and design. Through an Agency IT Ahead signed a contract to provide 100 per cent of its IT services to a multinational corporation.

The standard terms of the contract include:

IT Ahead to perform services assigned by the client

the client will give directions to the IT contractors employed by IT Ahead

IT Ahead will be paid for work done at a specified hourly rate on submission of invoices detailing the hours worked as recorded on time sheets

the clients will nominate the hours to be worked to meet deadlines

the clients would reimburse expenses of IT Ahead that are outside the scope of the contract

to ensure security, IP security standardisation software, and protection against viruses, work would be done at the client's premises on computers provided by the clients

unsatisfactory work would be rectified at the expense of IT Ahead

only qualified IT staff could be used by IT Ahead. For the 2021-22 tax year, IT Ahead received $180 000 in fees from the multinational corporation client under the contract and paid the following expenses:

$550 annual IT registration fees

$640 bank account fees $75 000 for George's salary. Advise George and IT Ahead of the possible application of the PSI regime and the assessability of the amounts received from the client. Cite relevant authorities to support your answer.